# Risk Premium of Financial Opening

## Panel A: Volatility Regressions

| Variable | resid² | |resid| |
|:---|---:|---:|
| kaopen | -4.1384 | -0.1111 |
| | (8.3069) | (0.1288) |
| fiscal_bal_gdp | -4.7014* | 0.1243*** |
| | (2.4367) | (0.0234) |
| nfa_gdp_lag | 51.4647*** | 0.7846*** |
| | (11.2125) | (0.1564) |
| rgdp_growth | -6.9523*** | -0.1632*** |
| | (1.9559) | (0.0138) |
|:---|---:|---:|
| N | 5342 | 5342 |
| R² | 0.0040 | -0.0204 |

## Panel B: Summary Statistics

| Measure | Value |
|:---|---:|
| SD ratio (Open / Closed) | 1.109 |
| VaR5 ratio (Open / Closed) | 0.923 |
| Levene test (F) | 1.943 |
| Levene p-value | 0.1434 |
| Brown-Forsythe test (F) | 1.943 |
| Brown-Forsythe p-value | 0.1434 |

*Panel A: PanelGLS of squared/absolute residuals on KAOPEN + controls. Positive KAOPEN coefficient = opening increases CA volatility.*
*Panel B: Open/Closed ratios >1 indicate wider distributions under openness. Levene/Brown-Forsythe test H₀: equal variances across KAOPEN terciles.*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*